Stocks that bucked the trend yesterday and continue to show strength today

August 5 global sell-off saw foreign investors pulling out of Indian stocks, erasing over Rs 15 lakh crore in investor wealth

Dalal Street kicked off the week in turmoil, with investors scrambling to book profits as the yen carry trade unwound and recession fears gripped the market. This global sell-off saw foreign investors pulling out of Indian stocks, erasing over Rs 15 lakh crore in investor wealth.

Despite the chaos, some stocks weathered the storm and even grew investor wealth. From defensive plays to those boosted by the Budget and strong earnings updates, several stocks stood out. Here’s a rundown of the top performers:

#1 Shakti Pumps | +8% in 2 days

Shakti Pumps has recently attracted attention after securing a Rs 558 crore order from the Uttar Pradesh government under the PM-KUSUM scheme, which promotes solar energy use in agriculture by subsidizing solar pumps for farmers. Since the scheme's launch in 2019, Shakti Pumps has shifted its focus to solar pumps through innovation and research.

This strategic pivot has paid off significantly, with the company's profit after tax soaring from Rs 2 crore in Q4FY23 to Rs 90 crore in Q4FY24—an astonishing 45-fold increase in a year. During the same quarter, Shakti Pumps delivered 15,000 solar pumps under the scheme, driving a 41 percent YoY revenue growth and fueling the remarkable net profit surge.

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#2 Fino Payments Bank | +7% in 2 days

On a weak market day, the Mumbai-based bank stood out by reporting its highest-ever quarterly profit of Rs 24.3 crore, a 30 percent increase from last year, with overall throughput growing 39 percent year-on-year in Q1FY25. The bank has been actively investing in digital improvements, including revamping its website and mobile apps, which has resulted in a 37 percent increase in average deposits year-on-year—an impressive feat amid challenges faced by traditional lenders.

With Paytm Payments Bank exiting and UPI transactions growing, the bank aims to triple its digital banking revenue share by FY25. Last December, it applied to the RBI for a small finance bank (SFB) license and is awaiting approval. If granted, this license will enable the bank to expand its offerings to include fixed and recurring deposits, enhancing its customer profile.

#3 CERA Sanitaryware | +12% in 2 days

The stock of this leading home solutions provider extended its gains for a second consecutive day, reaching an all-time high of Rs 10,710 on August 6. Despite the broader market downturn, the stock remained a favorite among investors following the company's announcement of a share buyback of up to Rs 130 crore. The buyback price is set at Rs 12,000 per share, with the record date for determining eligible shareholders on August 16, 2024.

Analysts note that Cera's stock is trading in a neutral zone, with its relative strength index (RSI) at 54.7, indicating neither an overbought nor oversold condition.

#4 Paras Defence and Space Technologies | +5.1% in 2 days

The stock stood strong in a weak market, with profits nearly tripling to Rs 14 crore and revenues soaring 73 percent YoY to Rs 83 crore for the quarter ended June. As a key player in India’s defence and space sectors, the company benefits from the government's indigenisation push.

The 18 percent increase in the space department’s 2024-25 budget and the defence minister’s goal of achieving Rs 50,000 crore in defence exports over the next five years are key growth catalysts. Additionally, the recent industrial license for optics manufacturing is expected to boost growth by 20-30 percent.

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#5 Pakka | +19.7% in 2 days

Food packaging firm Pakka grabbed limelight in the past 2 days after the company approved preferential issue of 54 lakh shares of face value of Rs 10 each at an issue price of Rs 272 apiece. The board also approved proposal for issue of 36 lakh warrants to public category of the company on a preferential basis.

That apart, the company has acquired additional stake in Pakka Inc, its wholly-owned subsidiary company based in USA.

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